Executive Summary
This report attempts to critically analyses how Marks and Spencer attempt to overcome the effects of selective perception, evaluate the possible bases for consumer segmentation that could define the target markets for the ‘Exclusively for Everyone’ advertising campaign. The report will also critically assess the use of reference groups in the campaign and examine how marketers are trying to change attitudes towards Marks and Spencer’s with reference to attitude change strategies, and to evaluate alternative strategies that could have been used.
The main findings of the report are as follows:
- Marks and Spencer attempt to overcome selective perception by the use of models that appeal to the customer, some in which the customer will not feel threatened by – they are not too young and beautiful looking – yet at the same time, appeal to the customer to entice them into the shop.
- The main type of segmentation used in the campaign are; psychographic, socio-cultural and behavioural segmentation. Marks and Spencer should concentrate on segmenting their target markets by behavioural and psychographic segmentation.
- Last year M&S used Claire Sweeney to launch a new bra range. This year has seen David Beckham design and launch his own boy’s clothing range within the store, and a celebrity packed Christmas television advert. Reference groups are used to have effect on an individual’s evaluations, aspirations or behaviour.
- Current attitude strategies used by M&S include; associating the product with an admired group, event or cause, and altering components of the multi-attribute model. Strategies that could be used by the company include; resolving two conflicting attitudes and changing beliefs about competitors brands.
Contents Page
1.0 Introduction
The purpose of this report is to critically analyse how Marks and Spencer attempt to overcome the effects of selective perception, evaluate the possible bases for consumer segmentation that could define the target markets for the ‘Exclusively for Everyone’ advertising campaign. The report will also critically assess the use of reference groups in the campaign and examine how marketers are trying to change attitudes towards Marks and Spencer’s with reference to attitude change strategies, and to evaluate alternative strategies that could have been used.
1.1 Company Background
Marks and Spencer’s became a reasonably priced upmarket store that offered high quality clothing after the Second World War. Marks and Spencer listened to their customers, they knew what wanted, and consequently launched a number of goods into the UK market such as Lycra, prawns and avocados. They also had a refund policy that kept customers coming back.
In 1979 Margaret Thatcher became Prime Minister and was an avid supporter of Marks and Spencer, however not everyone wanted to dress like her. The same year saw George Davis open ‘Next’ a clothing shop that was aimed at the upwardly mobile people aged 20 – 40 who wanted trendier clothes. M&S tried to fight back by using younger models in their campaigns, but Next had already stolen M&S’s younger customers.
In 1998 the M&S design department recommended that grey was the seasons ‘in’ colour, so every shade of grey was purchased. That year profits dropped by half a billion pounds. Marks and Spencer’s had lost touch with its customers. Customers wanted ‘classic’ clothes that were basic yet smart and in variety of nice colours, and women over 50 wanted sexy underwear.
Luc Vandevelde took over the job as Chief Executive in 2000. he hired one of M&S’s rivals to help do this. George Davis, who opened Next, and designed Asda’s George range. Davis launched his own clothing range ...
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In 1998 the M&S design department recommended that grey was the seasons ‘in’ colour, so every shade of grey was purchased. That year profits dropped by half a billion pounds. Marks and Spencer’s had lost touch with its customers. Customers wanted ‘classic’ clothes that were basic yet smart and in variety of nice colours, and women over 50 wanted sexy underwear.
Luc Vandevelde took over the job as Chief Executive in 2000. he hired one of M&S’s rivals to help do this. George Davis, who opened Next, and designed Asda’s George range. Davis launched his own clothing range within M&S called Per Una which is aimed at 25 – 35 year old fashion conscious women. 2001 also saw the launch of the successful ‘Perfect’ range. (BBC, 2002)
Today, M&S are successfully turning their major downfall around with profits up 8% to £3.69million already this year. (Ananova, 2002)
2.0 What is Selective Perception?
Perception is the process whereby we receive stimuli through our five senses and then assign meaning to it. Selective perception is therefore concerned with screening out or modifying stimuli. Solomon (2002) defines it as how ‘people attend only to a small portion of the stimuli to which they are exposed.’
2.1 How Marks and Spencer’s Overcome Selective Perception.
With the expertise of Rainey Kelly Campbell/Y&R, Marks and Spencer overcome selective perception by ensuring that their adverts appeal to everyone. Long adverts, usually a full page or two full pages, that are placed in magazines using words such as ‘Perfect’ and ‘Knitwhere?’ against plain backgrounds are used to draw attention.
When Marks and Spencer launched its first ever television advert, it portrayed a size 16, naked woman tearing her clothes off, then shouting ‘I’m normal’ at the top of a hill. This advert failed as few women wanted to be reminded of their size, and they didn’t want to publicise the fact by walking around holding and M&S bag. (news.bbc.co.uk) Instead women want to see fashion that is inspiring and will entice them into the shop.
The ‘Perfect’ range is based on quality that is affordable to everyone and gives the idea that the items of clothing are timeless wardrobe essentials. It also is says ‘these are the things you know we were good at’ (Rogers, 2001). Appendix 1 shows the black dress, which implies that the dress is perfect and without it, the wardrobe is not complete.
Appendices 2 and 3 show models with ‘perfect’ bodies modelling underwear. This overcomes selective perception as people are drawn to the images and the word ‘perfect.’ This advert gives women the image that was missing in the ‘I’m normal’ adverts and will hopefully encourage women to shop at M&S. As it is mainly woman who shop in M&S buying for themselves and their husbands (Gunn, 2002), the image of the male (Appendix 3) will attract women’s attention, thinking that their husbands could possibly look like that if they had the same underwear.. Prior to its downfall, M&S underwear was worn by 1 in 3 people (BBC, 2002), so these adverts also attempt to rebuild confidence in the brand.
Perceptual defence is a concept concerned with selective perception. Schiffman and Kanuk (2000) define it as the ‘process of subconsciously distorting stimuli to render them less threatening or more consistent with ones needs, values, beliefs or attitudes.’ M&S use models that are not too young and are ‘normal’ looking. Customers will not feel threatened by these models, and by seeing their image in these clothes, perceptual defence would occur.
This is likewise with Perceptual blocking ‘the subconscious ‘screening out’ of stimuli that are threatening or inconsistent with ones needs, values, beliefs or attitudes’ (Shiffman and Kanuk, 2002). Young, beautiful models may be seen as threatening, or inconsistent with the customer’s needs.
3.0 What is Segmentation?
Market Segmentation can be defined as ‘the division of the market into customer subsets, one or more of which becomes the target market, each with a distinct marketing mix’ (Turnbull, 2002). Marks and Spencer’s currently use psychographic, demographic, socio-cultural, and behavioural bases of segmentation.
3.1 Psychographic Segmentation
Psychographic segmentation is based upon people’s lifestyles. Marks and Spencer segment their consumers by their lifestyles. The groups are; traditional, classically stylish, fashion and designer fashion. The classically stylish group is M&S’s core customer. (Holmes, 2001)
3.2 Demographic Segmentation
Demographics can be defined as ‘dividing the market into groups based upon demographic variables such as age, gender, occupation, education, religion, race and nationality. (Kotler and Armstrong, 2001)
Marks and Spencer’s core customers are woman aged 35 – 50 in the BC1 social grouping. The Classic Collection is clearly aimed at this group. A reason for this being it uses older models. These adverts may appeal to this group as customers can relate with the model, and feel that they too can look good.
The groups before mentioned in psychographic segmentation are likely to be segmented by age also. For example, the ‘fashion’ group are likely to be 25 – 35, and the Per Una range caters for their needs.
The ‘designer’ group is clearly aimed at those who have higher incomes, this is because the designer range – Autograph, is designer priced. Within this group there are two target markets that are males and females
In terms of demographics, Marks and Spencer segment by age, gender and income.
3.3 Socio-cultural Segmentation
Socio-cultural segmentation is related to groups and cultural aspects such as social class, subcultures and what stage in the family cycle an individual is in.
Marks and Spencer’s have always aimed to be upmarket store offer high quality goods since the late 1950’s. The current target market is woman in the BC1 social grouping (Managerial and Skilled (non- manual) occupations) however, due to constantly changing lifestyles and spending habits it makes it difficult to distinguish whether people are truly in this group.
Socio-cultural segmentation can be aimed at those who want to climb social classes. For example the Per-Una range is aimed at the ‘high-street,’ fashion conscious customer. Therefore buying clothes from Marks and Spencer’s may make them feel that they have bought clothes from a quality shop, and give the impression to others that they can afford to shop there. This is also true of the ‘Perfect’ range which is also affordable.
Marks and Spencer’s core target customers are generally in the post-parent hood stage of the traditional family lifecycle. These customers have high disposable incomes and are very loyal to the shop. (Gunn, 2002). It’s therefore important to target these customers and maintain loyalty as they are most profitable.
3.4 Behavioural Segmentation
There are three types of behavioural segmentation, use-related, usage situation and benefit segmentation
Use related segmentation ‘categorises consumers in terms of product, service or brand-usage characteristics such as usage rate, awareness status and degree of brand loyalty’ (Schiffman and Kanuk 2000). Marks and Spencer target existing devoted, heavy users of their service who have are aware, informed, interested in the clothing with an intent to purchase. Marks and Spencer’s target these devoted customers, as they are most profitable.
Usage-situation – ‘segmentation that is based on the idea that the occasion/situation often determines what consumers will purchase or consume.’ (Schiffman and Kanuk 2000) In the BBC documentary Marks and Spencer’s… and Me, Christine Hamilton said that whenever she was having a dinner party she would always go to M&S for the food. This is an example of a usage situation.
Benefit segmentation is ‘based on the kinds of benefits consumers seek in a product’ (Schiffman and Kanuk 2000). ‘Exclusively for Everyone’ wants to make people understand that M&S offers quality that can be trusted, and suggests that products are available to everyone and that customers will not find a comparable product. The main benefits sought after in M&S products are high quality at a reasonable price.
Hansen (1998) suggests that socio-demographic variables do little to explain consumer behaviour and are often not suitable for market segmentation as it is becoming more homogeneous, and that behaviour is related to individual differences. Therefore M&S should concentrate on segmenting their consumers in respect to their behaviour traits and psychographics.
4.0 Reference Groups
A reference group is ‘an actual or imaginary individual group which has significant effect on an individual’s evaluations, aspirations or behaviour.’ (Solomon, 2002). M&S use indirect reference groups, people who we would want to have an association with, to advertise their products. David Beckham and Claire Sweeney are both celebrities in an aspirational group and are generally rated very highly, admired and recognised by consumers.
4.1 David Beckham
David Beckham recently launched his own boys clothing range, DB07, in an attempt to attract different markets (fashion conscious 4 – 16 year old boys). The national hero has helped change the perceptions of children’s clothing amongst children, with the range selling out when it was first launched. This clothing range will appeal to young boys as they admire David; they see him as a role model, and dream of playing football like him. It will appeal to parents as it offers M&S’s high quality and good value for money. By seeing the in-store adverts of David, they will feel that if they wear his clothes they can be cool like him.
However, a disadvantage of using such a star to endorse products targeted at a young audience is the encouragement of branding amongst children. This in turn could lead to bullying at school.
4.2 Claire Sweeney
Claire Sweeney became the face of M&S’s Egoboost bra campaign in a hope that a traditional celebrity endorsement of a product would bring more success to their women's wear department. M&S choose Claire for her personality, style and public perception as she fit the image they wanted. Claire is confident and glamorous and in choosing her to advertise it, the bra will ensure any woman feels the same. (). Claire will appeal to customers as they will think ‘if she wears it, it must be good.’ (Appendix 4)
4.3 Christmas Television Advert
Marks and Spencer’s current Christmas television advert contains many celebrities; Denise Van Outen, Ronnie Barker, Hermonie Norris, Joan Collins, Graham Norton, David Beckham, Cat Deeley and Sean Bean. The aim of the campaign is to achieve a very high level of awareness amongst customers, but also to target new customers. In having such a variety of celebrities, there is someone there who appeals to everyone, for example David Beckham, a role model to boys but will appeal also to women. Cat Deeley and Denise van Outen are very fashion Conscious and will be admired by the younger market that are easily influenced by such stars. Ronnie Barker on the other hand will appeal to older men. They will see that the shop does not cater for the younger market, and will hopefully realise that M&S do have something for everyone.
5.0 Attitude Change Strategies
An attitude change strategy is ‘developed with the objective to change the attitudes of the market leaders’ customers and win them over’ (Shiffman and Kanuk, 2000.) There are five main strategies available these are; changing the consumers basic motivational function; associating the product with an admired group or event; resolving two conflicting attitudes; altering components of the multi-attribute model and changing consumer beliefs about competitors’ brands. Current strategies adopted by M&S include associating the product with an admired group or event or cause, and altering components of the multi-attribute model. Models that M&S could have possible used are resolving two conflicting attitudes and changing beliefs about competitor’s brands.
- Associating the Product with an Admired Group or Event or Cause.
Marks and Spencer attempt to change attitudes with use of admired groups – celebrities. As mentioned in reference groups, M&S attempt to do this by using popular celebrities such as David Beckham.
Last year, M&S donated £438,000 from the sales of charity Christmas cards to six charities including Kidscape, CancerBACUP and the National Homeless Alliance. The money received by Kidscape was enough to fund an anti-bullying helpline for two years.().
M&S have recently launched a new campaign to coincide with the Golden Jubilee Celebrations called Rainbow of Hope, in which all funds raised will be donated to I CAN. They are aiming to raise £1million. Celebrities such as Gabby Roslin and Kirsty Young are also supporting this campaign. ()
Other charities that M&S have donated to include; Breakthrough Breast Cancer, World Cancer Research, Disability Action's Celebrating Diversity — Arts Education and Ability Programme and the National Neighbourhood Watch Association. M&S also believe in ethical trading.
In sponsoring and donating to such charities and events, M&S can portray a good image, in that they care for the community we live in. This may alter the attitudes of potential customers by pointing out the relationships that company has with celebrities and with the community.
- Altering Components of the Multi-attribute Model
The purpose of a multi-attribute model is to ‘portray consumers’ attitudes with regard to an attitude ‘object’ as a function of consumers’ perception and assessment of the key attributes or beliefs held with regard to the particular attitude ‘object’’ (Shiffman and Kanuk, 2000)
- Changing the Relative Evaluation of Attributes
‘The overall market for many product categories is often set out so that different consumer segments are offered different brands, with different features or benefits.’ (Shiffman and Kanuk, 2000). This can be related to M&S for example the Classically Stylish segment are offered simple, timeless yet stylish clothing, whereas the Designer Fashion segment are targeted with designer clothing from names such as Betty Jackson and Philip Treacy.
- Changing Brand Beliefs
Changing brand beliefs is concerned with changing the beliefs or perceptions about the brand itself. (Shiffman and Kanuk, 2000). Marks and Spencer are aware that the perception of value declined, and therefore are attempting to change this through focusing on elements that drive customer satisfaction such as greater style perception, quality perception, fit and newness. (Holmes, 2001)
- Adding an Attribute
‘Adding an attribute can be accomplished though adding an attribute that has previously been ignored to one that represents an improvement or technological innovation’ (Shiffman and Kanuk, 2000)
An example of an innovation that has added an attribute to M&S is the Secret Support lingerie range. The range won a Queens Award for Innovation (The Queens' Award for Innovation recognises outstanding innovation which has considerably improved commercial success and business performance and which has been sustained for two years or more). Other examples of innovation include the introduction of men’s machine washable suit, non-polish shoes, and the Bioform Bra.
In 2000 added an attribute to its service that could be classed as an improvement, it started to accept credit cards. Previous to this customers could only pay by cash, cheque, debit card or by store card. However, with a decline in customers, this had to change. Unsecured personal debt in the UK, such as credit cards and loans, has now reached a record level of £140billion. (news.bbc.co.uk) In accepting credit cards M&S have improved their service by allowing greater payment methods.
5.2.4 Changing the Overall Brand Rating
This strategy concerns ‘attempting to alter consumers overall assessments of the brand directly, without attempting to improve or change their evaluation of any single brand attribute.’ (Schiffman and Kanuk, 2000).
Marks and Spencer’s was founded on the principles of quality, value, service, innovation and trust. (. Today this has not changed, M&S are trying to reiterate to their loyal customers and win back previous customers by introducing clothing ranges that say ‘these are the things you know we were good at’ (Rogers, 2001).
- Resolving Two Conflicting Attitudes.
‘If consumers can be made to see that their negative attitude towards a product, a specific brand, or its attributes, is really not in conflict with another attitude, they may be induced to change their evaluation’ (Schiffman and Kanuk, 2000). This definition helps to illustrate how one negative attitude can be changed to create an overall positive stance. For example, a previous M&S shopper who was loyal to the store before its downfall in 1998 may have felt strongly about the quality, service and value that the company offered, however the ranges of clothing did not appeal to her. As M&S have introduced new lines of clothing which are stylish and up-to-date, which offer good value for money. The new clothing ranges such as Per Una and Perfect, may attract the customer back, who will once again be loyal.
- Changing Beliefs about Competitors Brands
This strategy has to be used with caution. Comparative advertising aims to highlight superiority for a brand over its competitors. A way in which M&S could do this is through comparing the timelessness and quality of their clothing products in the Perfect range for example, against a competitors clothing or through their healthy eating ‘Count on Us’ range, giving the impression it’s the healthiest food available.
6.0 Conclusion
In conclusion, Marks and Spencer attempt to over come the effects of selective perception by using models in their adverts that are ‘normal’ looking, they use simple words such as ‘Perfect’ to attract attention. The Perfect range that offers quality clothing at affordable prices, attempts to overcome selective perception by implying that the item is perfect for everyone. The perfect underwear models also appear to have ‘perfect’ bodies. Again this overcomes selective perception as people will be drawn to the image and the words.
M&S use psychographic, demographic, socio-cultural and behavioural segmentation to define their target markets. Studies suggest however that socio-demographic segmentation is no suitable for market segmentation as it is becoming more standardised. M&S should therefore concentrate on segmenting their target markets by psychographic and behavioural segmentation methods.
Marks and Spencer’s previous advertising campaigns have included the use of celebrities such as Claire Sweeney and David Beckham. The current advertising campaign contains many popular celebrities in an aim to attract a high level of awareness and target new customers.
Current attitude change strategies adopted by M&S include associating the product with an admired group or event or cause, and altering components of the multi-attribute model. In doing this they are trying to change the opinions of potential customers so that they will shop with M&S. possible strategies that M&S could use in the future could include resolving conflicting attitudes and changing beliefs about competitors brands
Clearly Marks and Spencer’s are recovering from their downfall by realising that in order to maintain present customers and gain new ones, they have to listen to what they need and want.
7.0 References
- .Programme within a series - Marks and Spencer…and Me, TV, BBC2, 2002 October 30
- [Videoconference] T Gunn, Marks and Spencer, 11 October 2002
- 2001 Marks & Spencer Raises £438,000 from Charity Christmas Card Sales Money Funds Anti-Bullying Helping For Two Years! [online] [13 November 2002]
- ANANOVA. Profits surge as M&S lures shoppers back 5 November 2002 [online] AOL Keyword: Business News. [5 November 2002]
- BBC News Online. Is Marks & Spencer back in fashion? 10 July 2002 [online] [26 October 2002]
- Claire Sweeney is the New Face of er…M&S. 2001. [online] [30 October 2002]
- HANSEN, F. Using Social Character in Segmentation. Admap. June 1998
- HOLMES, R. UK Retail Recovery Plan. 2001. [online] [19 November 2002]
- KNIGHT, J. Are Britons heading for a debt disaster? 5th November 2002 [online]
- KOTLER, P & ARMSTRONG, G., 2001. Principles of Marketing, 9th ed. New Jersey: Prentice Hall Inc.
- Rainbow of Hope. [online] http://www.ican.org.uk/supporting_ican/rainbowofhope.asp [20 November 2002]
- RODGERS, D. Can a clothes range with a back to basics approach spark a Marks and Spencer revival? Marketing, September 13, 2001. Page 22.
- SHIFFMAN, L. G & KANUK, L.L., 2000. Consumer Behaviour. 7th ed. New Jersey: Prentice Hall Inc.
- SOLOMON, M et al, 2002. Consumer Behaviour – A European Perspective. 2nd ed. Harlaw: Prentice Hall
- TURNBULL, A. Marketing Communications Segmentation Lecture, 8th November 2002
8.0 Bibliography
- KOTLER, P & ARMSTRONG, G., 2001. Principles of Marketing, 9th ed. New Jersey: Prentice Hall Inc.
- MACKIE, G (2002), Consumer Behaviour Lecture Notes
- Marks and Spencer Homepage [online] [22 November 2002]
- McNICHOLAS, C (2002), Consumer Behaviour Lecture Notes
- PETER, J, P. (1999). Consumer behavior and marketing strategy. Boston, MA : McGraw-Hill
- SHIFFMAN, L. G & KANUK, L.L., 2000. Consumer Behaviour. 7th ed. New Jersey: Prentice Hall Inc.
- SOLOMON, M et al, 2002. Consumer Behaviour – A European Perspective. 2nd ed. Harlaw: Prentice Hall
